The U.S. smartphone market shrank in the second quarter of 2026. As upward pressure on prices grew, sales of low-priced smartphones plunged, and small and mid-sized manufacturers that are less able to absorb higher costs than major brands were hit harder.

According to IT outlet 9to5Mac on Tuesday, Counterpoint Research analysed that rising memory prices pressured the low-end segment of the U.S. smartphone market.

In Counterpoint Research figures, U.S. smartphone sales by Apple, Samsung Electronics, Motorola and Google fell 4 percent year on year in the second quarter. Sales by other manufacturers plunged 45 percent. With parts costs rising across the market, smaller manufacturers were seen as unable to absorb the increased costs.

Weakness was especially pronounced in smartphones priced below $100. Counterpoint Research said sales of smartphones priced at $100 or less fell by almost 65 percent from a year earlier. As prices for low-end devices rose, the price gap narrowed between entry-level products from Samsung Electronics and Motorola and white-label smartphones. Samsung Electronics and Motorola increased their share of the prepaid phone market.

Apple is still keeping iPhone prices unchanged in the United States, but the market's attention is shifting to the price of its next products. Counterpoint Research expected Apple to raise prices for iPhone 18 series models. Some products have been discussed as possibly being unveiled within days.

Price expectations have already risen. 9to5Mac, citing Jeff Pu, said last week it saw the iPhone 18 Pro at $1,349 to $1,399 and the iPhone 18 Pro Max at $1,449 to $1,499. There have also been repeated forecasts that the iPhone Ultra could start at about $2,500.

Apple said iPhone revenue rose 22 percent to $54.2 billion in fiscal 2026 third-quarter results it released in late July. Apple also warned at the same time that memory costs and supply constraints would worsen significantly in the September quarter. It noted the burden could increase especially across the iPhone, iPad and Mac lineups.

This trend appears to be widening polarisation in the U.S. smartphone market. Major companies have secured the capacity to respond based on product lineups and distribution networks despite rising parts prices, but small and mid-sized manufacturers are being directly affected by the low-end market slowdown. If Apple also moves to adjust prices for its next iPhones, the U.S. smartphone market could continue into the second half with price burdens weighing on demand.